spiritsNEWS March 2018

Open consultation by DG TRADE on Counterfeit& Piracy Watch-List

Two years ago, EUIPO published a report on the economic cost of the IP infringement in the spirit and wine sector. The main findings were devastating. 3.3% of sales by both sectors are lost due to counterfeiting, which means a loss of €1.3 billion of revenue annually. A €1.2 billion of government revenue are lost, be it in taxes, social contributions and excise duties. Counterfeiting also carries a negative social impact with 4,800 direct jobs lost. EUIPO declared that 23,300 direct and indirect jobs are lost in the EU economy of which 8,600 jobs are lost in agriculture and 6,100 jobs are lost in the food industry.

The Commission is also fully right in saying that infringements undermine the European Union's comparative advantages in innovation and creativity to the detriment of EU citizens. It also poses significant risks to consumer health and safety (eg, risk of methanol poisoning) as well as to the environment. Besides, IPR infringements, and in particular counterfeiting and piracy also seriously harm European business trading outside the European Union, including the damage caused to geographical indications which are crucial for the spirit producers.

In this context, we welcome the initiative of the Commission trying to identify online and physical marketplaces situated outside the European Union that are reported to engage in or facilitate substantial IPR infringements, and in particular piracy and counterfeiting.

We will do our best to cooperate with the Commission to establish and publish this so called "Counterfeit and Piracy Watch-List". The list will identify and describe the most problematic marketplaces - with special focus on online marketplaces - in order to encourage their operators and owners as well as the responsible local authorities and governments to take the necessary actions and measures to reduce the availability of IPR infringing goods or services.  We have invited our member companies to take part in the consultation open until mid-April.

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